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Accounting 1)You can find info below for Alpha Ltd - Cash is 10

Accounting

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Accounting

1)You can find info below for Alpha Ltd
- Cash is 10.000 on 1/4/2020
- The sales budget for March, April, May and June is the following:
March April May    June
Cash sales   15.000   17.000   15.000   18.000
Credit sales   30.000   33.000   45.000   52.000
Total Sales   45.000   50.000   60.000   70.000
-   80% of credit sales is being collected the same month and the remaining amount next month.
-   Purchases of goods every month are budgeted to be the 70% of total sales of each month. The monthly purchases are being paid next month.
-   Management costs of each month (paid the same month) are budgeted to be 10% of total sales of each month. 50% of these amounts are depreciation cost.
-   Company will purchase fixed asset 17.500 cash for April.
-   Company should have minimum cash 10.000 at the beginning of each month. For this reason, company is negotiating with a bank in order to cover possible negative cash deficit. If the company proceeds with borrowing money, the interest free loan will be deposited at the beginning of the month and the payment will be done at the end of next month.
The following are needed:
a.   Collections budget for each month (March, April   , May, June)
b.   Payments budget for each month (March, April   , May, June)
c.   Cash budget for each month. (March, April, May, June)